Problem: Time travel is impossible.

Humans yearn to discover our shared history when we travel, but it's hard to connect deeply with the past. We listen to audio tours and read guide books, and yet we struggle to appreciate what it must have felt like to actually be there during the moments that matter most.

OWL Transports You Into The Past

Redwood City, CA - Today

Redwood City, CA - 150 Years Ago

Owlized delivers locational virtual reality experiences that enable time travel at the most visited destinations on Earth. OWL VR, the world's first outdoor VR kiosk, marries VR and the physical world, creating a window into another time, enabling you to experience the past as if you were really standing there.

Our locational VR platform offers an unforgettable experience to the public as well as significant transactional revenue to cities, parks, tourist attractions and historic sites.

How it Works

Just walk up to the OWL and pay a few bucks with your credit card or phone, then experience a 2-minute time travel 3D video showing you the history of the place you're standing. You can move the OWL head 360-degrees, just like the old-fashioned coin-operated binoculars.

Each OWL experience is produced by an exclusive Owlized studio partner. Similar to a movie studio earning revenue from box office ticket sales, our partners earn a percentage of revenue from each credit card swipe.

Business Model

We estimate revenue from each OWL deployment to be at least $400,000 per year, which then gets split between the tourist site and our studio partners. This provides an incredible source of income for cash-strapped parks and historic sites, and a recurring revenue source for world-class virtual reality studios.

Competitive Landscape

No one packs a VR headset with them when they travel, and that's not likely to substantially change in the future. Even augmented reality glasses fail to provide a fully-immersive, convincing time travel experience. The only way to truly feel like you've travelled back in time is with a rugged, weatherproof, outdoor VR kiosk, and Owlized is the only company in the USA that makes one.

Traction

Our prototype OWL, which is free to the public, has been used by dozens of major clients, including the Cities of San Francisco, Los Angeles, Palo Alto, Santa Monica, and Redwood City, as well as by Fortune 500 companies and top advertising agencies. With more than 50,000 OWL users to date and more than $450,000 in sales, we have already proven that there is strong demand for location-based immersive experiences.

We have also secured our first contracts with world-class VR studio partners to produce OWL VR experiences at tourist attractions at zero cost to Owlized, in exchange for revenue share. Additionally, we have secured our first memorandum of understanding (MoU) at one of the top 5 most popular West Coast tourist attractions, in Los Angeles, in a deal with revenue potential exceeding $1.5M annually. A second such deal is pending at a second Top 5 West Coast attraction in the San Francisco Bay Area, launching Summer 2018.

Globally we estimate this addressable market to be worth $4B, and Owlized has a powerful first-mover advantage, patent pending, and mature sales channels which will enable us to scale quickly while boxing out competitors.

Owlized has scooped up numerous awards and recognition to date. In addition to our acceptance into UC Berkeley’s highly prestigious and competitive SkyDeck startup accelerator, we have also been honored with the following:

Go-To-Market Strategy

Our go-to-market strategy is to launch at our first two tourist attractions in 2018 in California, then raise more capital and scale quickly to the next 25 locations. With more than $44 million per year worth of leads and $1.5 million per year worth of opportunities we're actively pursuing, we are poised to quickly become the market leader and for Owlized to become a household name for tourists globally.

Minimum investment

Type of security

A SAFE is a Simple Agreement for Future Equity. An investor makes a cash investment in a company, but gets company stock at a later date, in connection with a specific event. The Crowd SAFE is a modified SAFE that is better suited for crowdfunding.

Funding goal

$25,000
–
$1,070,000

Owlized needs to raise
$25K
before the deadline. The maximum amount Owlized is willing
to raise is $1.07M.
Learn more

Deadline

Owlized needs to reach their minimum funding goal before
the deadline. If they don’t, all investments will be refunded.
Learn more

Invest

Receive

Invest

$25,000

Receive

$25,000
Crowd SAFE

Dolorean Level: This package includes all of the above perks, plus the creation of your own 3D avatar, which will be turned into a character inside an actual OWL experience at our most popular OWL site for millions of people to see.

Limited (25 left of 25)

Invest

$50,000

Receive

$50,000
Crowd SAFE

Great Scott Level: This level includes all the above perks plus a weekend vacation in San Francisco or Los Angeles in 2018 and VIP access to the ribbon-cutting ceremony celebrating the launch of a new project.

Why others invested

I invested because I believe VR is the technology of the future. It will help us understand and empathise with people of other cultures, genders and generations and teach eachother how to coexist peacfully.

I have 4 children and this is something that each one of them would love to use on any vacation we were to take. It would be extremely educational and enlightening for all ages and people of all backgrounds.

FAQ

What is OWL VR?

OWL VR® enables tourists to experience time travel when visiting the most popular destinations on Earth. OWL VR is a self-service pay-per-use virtual reality kiosk which plays location-based 360-degree 3D video, enabling important historic moments to be brought to life as you were standing in the same location, but in the past. OWL VR is designed for interactive use with user-controlled pan and tilt, button controls, audio playback, and payment processing via credit card. OWL VR is vandal-resistant, reliable and weatherproof, built to endure the harshest environments that tourists visit.

OWL VR offers site operators like Pier 39 both a world class historic attraction which enhances the visitor experience by celebrating the unique cultural heritage of the site, and a healthy recurring revenue stream, generated one credit card swipe at a time.

What makes OWL VR unique?

The vast majority of OWL users have never experienced virtual or augmented reality, and our highly visible public products offer their first such experience. Furthermore, the OWL experience itself is more than just a game or piece of entertainment, but a contextually meaningful time travel experience that offers future and historic views of the location where the user is standing.

This experience can't be provided with VR head-mounted displays (HMDs) because those devices aren't capable of determining your exact location, nor can they match the VR picture to the outside physical environment. Also, HMDs devices are not weatherproof or meant for the general public.

Augmented Reality (AR) devices are also not suited for time travel. While the promise of AR is fantastic, the technology is meant to overlay graphics on top of what you see with the naked eye. This will offer interesting and informative experiences, but is not immersive, so there will be elements in your view that interfere with the experience of time travel. Do you really want some guy in Nikes running through your San Francisco Gold Rush experience?

Fundamentally, OWL represents an entirely new medium of communication, combining the fully immersive power of virtual reality with a form factor that places the experience within the context of the real, physical world. We use the virtual to augment the real. No other company has blended these platforms together into a single experience the way we have.

Who produces the content?

All OWL VR experiences are produced by our studio partners, who earn a revenue share from the project they've developed the content for. Much like a movie theater / movie studio relationship, Owlized provides the delivery mechanism for immersive experiences and our studio partners handle the production of those experiences.

Owlized offers a very unique and potentially highly lucrative permanent revenue stream for talented studios looking to reach mass audiences with their productions.

How much does it cost a tourist attraction?

Nothing. We offer OWL VR as a free attraction to tourist sites and in exchange for permission to show up, we provide a permanent revenue share with the site operator from all proceeds generated by the OWLs.

Do you have your Meet the Drapers appearance transcript?

Aaron S.: I'm Aaron Selverston, I'm the CEO and co-founder of Owlized. I've always been incredibly passionate about virtual reality as a storytelling medium, and our whole team feels that way.

Female: Music's good.

Aaron S.: We've brought the company to where it is now fueled by that passion. From day one, we had a lot of people that told us we were crazy. We're trying to create a new product in a new market and provide a totally new experience to an untested market. I think all human beings really yearn to understand ...

Female: Musically.

Aaron S.: ... ourselves and to understand who we are as a people. The way that we do that is by understanding our past.

What better way to understand our past than to travel to the places that matter most to us, and to learn about how those places were made, or what battles happened there, or whatever the historic significance [crosstalk 00:14:16] of that place was, because it helps us really understand who we are.

Monique: I'm the Director of SU Ventures, and we basically scour the planet looking for entrepreneurs that are leveraging exponential technologies, so things like artificial intelligence, synthetic biology, to solve humanity's grand level challenges.

This is Anya. Anya, you want to tell them a little bit about what you're doing with ... Yes.

Anya: Yeah, absolutely. Basepaws is a pet genetics company, which came out of Singularity University last year as part of their GSP program. In the simplest terms, Basepaws is 23andMe for cats and dogs.

Jesse Draper: Hi.

Aaron S.: Hi everybody.

Bill Draper: Hello.

Aaron S.: Nice to meet you. My name's Aaron Selverston, I'm the CEO and co-founder of Owlized, and we are a time travel company. This is Owl, this is the world's first locational reality platform. What's locational reality? We combine virtual reality, which is what you see inside, and place. Each device is meant to be permanently installed at each of the most popular destinations on earth. Let's say you're going to have a nice weekend in wine country.

You go up to Napa, California, and you walk over the bridge over the Napa River, this is just a snapshot of what you would see, right? Then you notice an Owl, and you know what that means. It means that for three bucks, you can step back in time and bear witness to the history of that place. Again, this is just a snapshot. In the Owl, it's VR, so you're looking around in all directions and feeling like you're actually standing there in that same place in history.

Now, let's zoom out. Imagine going to Mount Rushmore. Watch the heads get carved onto the mountain. We're doing what other VR and AR companies can't do and aren't even trying to do by addressing a market that we believe is a $4 billion addressable market, and that's tourism. We're providing a solution for the masses, for everyday people who are visiting these destinations. To the tune of a billion people per year, internationally, spending about $1,000 per trip on things just like this.

Jesse Draper: We'll be right back after a quick break.

Welcome back to "Meet the Drapers."

Well, I know we all love time travel. Can I try it?

Aaron S.: Absolutely.

Jesse Draper: Okay, so I go, I look.

Aaron S.: Yep. What you're going to see inside is just an example of the kind of content that can play. It's a 360 degree video. The actual content that's produced for each location comes from any of our vendors. There's so many incredibly talented VR studios. For them, we're providing a revenue stream for them to produce tight, two minute packages of each of these historic sites.

Tim Draper: Can you go to the future? I'm okay going back in history, but I don't want to project out. Did we lose the four faces over the ...

Aaron S.: At Mount Rushmore.

Tim Draper: Mount Rushmore.

Aaron S.: Uh-huh (affirmative). Or how about you're walking down the street in San Francisco and you want to see what the city's going to build on this street. The City of San Francisco hired us to install these on Geary Boulevard to show residents the future of that street after they install high speed bus lanes.

Bill Draper: Could you tell us a little more about how you charge? You charge by the minute, or you're not trying to sell these machines. You own the machines, correct?

Aaron S.: That's right. For the city or for the tourist attraction, it doesn't cost them anything upfront. All they need to do is give us permission to show up. The charge is to the tourist or visitor to that site, $3 for a two minute experience.

Jesse Draper: Do you take all that money?

Aaron S.: We collect the revenue, and then we share a percentage of it back to the park, the city or whoever the site is, and a percentage to our content creators.

Jesse Draper: Okay, so let's pick a location like Ghirardelli Square.

Aaron S.: Okay.

Jesse Draper: Okay?

Aaron S.: Yeah.

Jesse Draper: Ghirardelli Square, you put one of these there and then how much per month, on average, would you make in a location like that? A touristy location in San Francisco.

Aaron S.: Sure. On an annual basis, we're estimating $400,000 a year in revenue for each million visitors per year who visit that site.

Tim Draper: How much does it cost you to put one it?

Aaron S.: Each device today costs us $10,000 per machine, because we're making them by hand here in this country. As we scale and reach production volume, we think we can cut-

Jesse Draper: This costs $10,000 to make?

Aaron S.: That's right.

Jesse Draper: You can get that down.

Aaron S.: I agree.

Jesse Draper: That's crazy.

Aaron S.: Right.

Jesse Draper: Charging $3 with a $10,000 product, you're going to need to get that down significantly.

Bill Draper: What does our moon shot guy think?

Jesse Draper: Yeah.

Naveen Jain: I personally like the idea a lot. These kind of things are good, but to me, I really get excited about it in saying, "How would that completely change the world?" To change the world, you have to sometime break away from the past to be able to completely rethink, "How would that look like?" Sometime, making it familiar is helpful, but at the same time, it limits you to what can be done.

Tim Draper: You might be completely obliterated by somebody who just has a couple of VR goggles that they hand out and say, "Walk around."

Aaron S.: Right, and that's the sort of most common question that I get from investors, "Why not just do this on my phone? Why not do this on Google Cardboard or Oculus Rift?" The simple answer is that those devices are really, really geared for gaming, entertainment, and one person, you, sitting on your couch, in your living room [crosstalk 00:20:07] eating Cheetos, experiencing those things.

That's an awesome experience, but for the general public outside, you need a form factor that is weather proof, secure, robust [crosstalk 00:20:18] and that operators of those sites want to use. No one wants to be responsible for operating an attraction where you are dealing with headsets, renting them out, they're breaking all the time. [crosstalk 00:20:30] They're not sanitary, and most importantly ...

Tim Draper: This isn't sanitary.

Aaron S.: It is, it's sanitary.

Naveen Jain: Honestly, let me tell you why, I think this thing is going to go away and here is why. Imagine four years from now, two years from now, [crosstalk 00:20:43] everybody's going to have the augmented reality glasses. You don't have to be renting them out, assume everybody has one.

Aaron S.: Big assumption, but okay. [crosstalk 00:20:50].

Naveen Jain: Let's assume it's going to be there, because whether the Ais going to come on your iPhone, whether AI is going to come on your glasses, AI is going to come. You'll be able to see right in front of you the past and the future and the current. [crosstalk 00:21:0]

Tim Draper: Sure.

Naveen Jain: You can completely change the experience, and in that world, you're gone. Poof.

Aaron S.: Wrong.

Jesse Draper: Poof.

Aaron S.: Let me tell you why you're wrong, for two reasons.

Naveen Jain: Okay.

Aaron S.: First of all, augmented reality [crosstalk 00:21:14] by definition is augmenting the present moment, so you're always going to see the existing moment in your view with AR. You can see some guy in Nikes running through your shot [crosstalk 00:21:26]. You don't want some guy in Nikes running through the battle of Gettysburg, do you?

Naveen Jain: First of all, the answer is no, and no, and no, and here's why.

Aaron S.: Okay.

Naveen Jain: It's called augmented, that means you can augment 100 percent of it [crosstalk 00:21:38] or you an augment 10 percent of it.

Bill Draper: Let's say 10 years from now, how big do you think this is? [crosstalk 00:21:49]. How much money do we put in and how much money are we likely to get out? [crosstalk 00:21:57] if we have a proportion of this? I'm not sure this share of-

Aaron S.: Just in this country alone, tourism is a $192 billion market that's being almost wholly unaddressed by VR or AR. [crosstalk 00:22:09]. Globally, it's multiple trillions of dollars representing about a ninth of global GDP.

Tim Draper: How big is that market, the market for those things?

Aaron S.: That's where we're going right now. Yep, so-

Tim Draper: How many of those are out there and how much are they generating? [crosstalk 00:22:21].

Aaron S.: You mean the old binoculars.

Tim Draper: The old binoculars.

Aaron S.: Oh, not really a competitor. Because those, you have to put them in front of where there's a beautiful view. These can literally go any location where you have at least a million annual visitors, okay? [crosstalk 00:22:33] We believe there's about 10,000 of those locations around the world, and if we're estimating $400,000 a year in revenue, times 10,000, that's a minimum addressable market of $4 billion [crosstalk 00:22:46].

Bill Draper: You're not going to get in all 10,000.

Aaron S.: Don't need to. Even if we get into half, that's a $2 billion opportunity.

Bill Draper: Okay, well what is your plan? What do you think is going to happen?

Aaron S.: Our plan is to ... Sure, so our go to market strategy is spread out [crosstalk 00:22:57] in different phases. Right now, we're entering a phase where we want to bring this to the first two attractions, then raise a couple million dollars [crosstalk 00:23:05] and begin land grabbing to be first to install at all the most popular destinations on earth. These are quasi-permanent deployments, kind of like the old coin operated binoculars. Once we're in, we're never coming out.

Jesse Draper: What else should we know?

Aaron S.: It's not too often that people have an opportunity to invest in a company that's truly on a leading edge of a new medium that will become standard place, globally. This is an opportunity for every-

Naveen Jain: What's the valuation?

Aaron S.: In this round, it's a convertible note with a $6 million pre-money cap.

Tim Draper: Well, good. Let's see what our audience has in store. Maybe you can vote this up, you can vote it down or you could invest in this.

Jesse Draper: Fund. You can fund him.

Tim Draper: You can fund.

Jesse Draper: Thank you so much.

Tim Draper: Thanks for coming,

Aaron S.: Thank you.

Jesse Draper: This was awesome. So nice to meet you.

Tim Draper: Very good job.

Aaron S.: Thank you. Thanks.

That was fun. I thought the Drapers and their guest were engaged and clearly liked the idea. They asked a lot of smart, tough questions that I felt prepared for. I think the most important thing is that it passed the smell test. It seemed like something that they would want to use themselves, and as long as I'm able to convey that during these conversations, then I feel good, so overall, great experience.

Tim Draper: Taking people along is an important thing and I, I made a huge mistake. I didn't back Reed Hastings at Netflix because ... I backed him before, but I didn't back-

Jesse Draper: Big mistake.

Tim Draper: Huge mistake.

Jesse Draper: Big mistake.

Tim Draper: Sorry about that. Would have worked out for you too probably.

Jesse Draper: No.

Tim Draper: The reason was I said, "Well, everybody's going to be streaming this stuff. Why are you putting a CD, a DVD in their mailbox? What are you thinking?" He said, "They're not ready for that. They're going to get there." This may be the same kind of thing.

Naveen Jain: It's quite possible. It's really quite possible. I like to see the vision of the people when they're starting.

Tim Draper: The whole thing.

Naveen Jain: The vision is ...

Bill Draper: That is a very good point.

Tim Draper: It was your ... This was your vision, not his that was to take them along.

Risks

We face competition with respect to any products which have been or will be developed or commercialized. Our competitors include major companies worldwide. Many of our competitors have significantly greater financial, technical and human resources than we have and superior expertise in research and development and marketing approved products and thus may be better equipped than us to develop and commercialize those products. These competitors also compete with us in recruiting and retaining qualified personnel and acquiring technologies. Smaller or early stage companies may also prove to be significant competitors, particularly through collaborative arrangements with large and established companies. Accordingly, our competitors may commercialize products more rapidly or effectively than we are able to, which would adversely affect our competitive position, the likelihood that our products will achieve initial market acceptance and our ability to generate meaningful additional revenues from our products.

We depend on these suppliers and subcontractors to meet our contractual obligations to our customers and conduct our operations. Our ability to meet our obligations to our customers may be adversely affected if suppliers or subcontractors do not provide the agreed-upon supplies or perform the agreed-upon services in compliance with customer requirements and in a timely and cost-effective manner. Likewise, the quality of our products may be adversely impacted if companies to whom we delegate manufacture of major components for our products, or from whom we acquire such items, do not provide major components which meet required specifications and perform to our and our customers expectations. Our suppliers may be less likely than us to be able to quickly recover from natural disasters and other events beyond their control and may be subject to additional risks such as financial problems that limit their ability to conduct their operations. The risk of these adverse effects may be greater in circumstances where we rely on only one or two subcontractors or suppliers for a particular component or set of components.

In certain instances, we rely on single or limited service providers and outsourcing vendors in the United States and around the world because the relationship is advantageous due to quality, price, or lack of alternative sources. If production or service was interrupted and we were not able to find alternate third-party providers, we could experience disruptions in manufacturing and operations including product shortages, higher freight costs and re-engineering costs. If outsourcing services are interrupted or not performed or the performance is poor, this could impact our ability to process, record and report transactions with our customers and other constituents. Such interruptions in the provision of supplies and/or services could result in our inability to meet customer demand, damage our reputation and customer relationships and adversely affect our business.

We obtain these materials from a limited number of vendors, some of which do not have a long operating history or which may not be able to continue to supply the equipment and services we desire. Some of our hardware, software and operational support vendors represent our sole source of supply or have, either through contract or as a result of intellectual property rights, a position of some exclusivity. If demand exceeds these vendors capacity or if these vendors experience operating or financial difficulties, or are otherwise unable to provide the equipment or services we need in a timely manner, at our specifications and at reasonable prices, our ability to provide some services might be materially adversely affected, or the need to procure or develop alternative sources of the affected materials or services might delay our ability to serve our customers. These events could materially and adversely affect our ability to retain and attract customers, and have a material negative impact on our operations, business, financial results and financial condition.

Our future success depends on our ability to maintain and continuously improve our quality management program. An inability to address a quality or safety issue in an effective and timely manner may also cause negative publicity, a loss of customer confidence in us or our current or future products, which may result in the loss of sales and difficulty in successfully launching new products. In addition, a successful claim brought against us in excess of available insurance or not covered by indemnification agreements, or any claim that results in significant adverse publicity against us, could have an adverse effect on our business and our reputation.

These events could lead to recalls or safety alerts relating to our products (either voluntary or required by governmental authorities) and could result, in certain cases, in the removal of a product from the market. Any recall could result in significant costs as well as negative publicity that could reduce demand for our products. Personal injuries relating to the use of our products can also result in product liability claims being brought against us. In some circumstances, such adverse events could also cause delays in new product approvals. Similarly, negligence in performing our services can lead to injury or other adverse events.

There are substantial risks and uncertainties associated with these efforts, particularly in instances where the markets are not fully developed. In developing and marketing new lines of business and/or new products and services, we may invest significant time and resources. Initial timetables for the introduction and development of new lines of business and/or new products or services may not be achieved and price and profitability targets may not prove feasible. We may not be successful in introducing new products and services in response to industry trends or developments in technology, or those new products may not achieve market acceptance. As a result, we could lose business, be forced to price products and services on less advantageous terms to retain or attract clients, or be subject to cost increases. As a result, our business, financial condition or results of operations may be adversely affected.

We collect and store sensitive data, including intellectual property, our proprietary business information and that of our customers, suppliers and business partners, and personally identifiable information of our employees, in our data centers and on our networks. The secure processing, maintenance and transmission of this information is critical to our operations and business strategy. Despite our security measures, our information technology and infrastructure may be vulnerable to attacks by hackers or breached due to employee error, malfeasance or other disruptions. Any such breach could compromise our networks and the information stored there could be accessed, publicly disclosed, lost or stolen. Any such access, disclosure or other loss of information could result in legal claims or proceedings, liability under laws that protect the privacy of personal information, and regulatory penalties, disrupt our operations and the services we provide to customers, and damage our reputation, and cause a loss of confidence in our products and services, which could adversely affect our business/operating margins, revenues and competitive position. The secure processing, maintenance and transmission of this information is critical to our operations, and we devote significant resources to protecting our information by utilizing industry-leading encryption protocols and other robust safeguards. The expenses associated with protecting our information could reduce our operating margins.

Such an event might be caused by computer hacking, computer viruses, worms and other destructive or disruptive software, "cyber attacks" and other malicious activity, as well as natural disasters, power outages, terrorist attacks and similar events. Such events could have an adverse impact on us and our customers, including degradation of service, service disruption, and damage to our equipment and data. In addition, our future results could be adversely affected due to the theft, destruction, loss, misappropriation or release of confidential customer data or intellectual property. Operational or business delays may result from the disruption of network or information systems and the subsequent remediation activities. Moreover, these events may create negative publicity resulting in reputation or brand damage with customers.

In particular, the Company is dependent on Wei Tao, Ryan Scott, Ron Hupp, and Aaron Selverston. Wei Tao has been a member of the Board of Directors since March 2017. Ryan Scott has been the CTO since December 2016. Ron Hupp has been a VP of sales starting in January 2015 and then became the VP of Operations in June 2015. Aaron Selverston has been a member of the Board since December 2016 and the Companys CEO since December 2013. The Company has or intends to enter into employment agreements with Wei Tao, Ryan Scott, Ron Hupp, and Aaron Selverston although there can be no assurance that it will do so or that they will continue to be employed by the Company for a particular period of time. The loss of Wei Tao, Ryan Scott, Ron Hupp, and Aaron Selverston or any member of the board of directors or executive officer could harm the Companys business, financial condition, cash flow and results of operations.

Such intellectual property rights, however, may not be sufficiently broad or otherwise may not provide us a significant competitive advantage. In addition, the steps that we have taken to maintain and protect our intellectual property may not prevent it from being challenged, invalidated, circumvented or designed-around, particularly in countries where intellectual property rights are not highly developed or protected. In some circumstances, enforcement may not be available to us because an infringer has a dominant intellectual property position or for other business reasons, or countries may require compulsory licensing of our intellectual property. Our failure to obtain or maintain intellectual property rights that convey competitive advantage, adequately protect our intellectual property or detect or prevent circumvention or unauthorized use of such property, could adversely impact our competitive position and results of operations. We also rely on nondisclosure and noncompetition agreements with employees, consultants and other parties to protect, in part, trade secrets and other proprietary rights. There can be no assurance that these agreements will adequately protect our trade secrets and other proprietary rights and will not be breached, that we will have adequate remedies for any breach, that others will not independently develop substantially equivalent proprietary information or that third parties will not otherwise gain access to our trade secrets or other proprietary rights. As we expand our business, protecting our intellectual property will become increasingly important. The protective steps we have taken may be inadequate to deter our competitors from using our proprietary information. In order to protect or enforce our patent rights, we may be required to initiate litigation against third parties, such as infringement lawsuits. Also, these third parties may assert claims against us with or without provocation. These lawsuits could be expensive, take significant time and could divert managements attention from other business concerns. The law relating to the scope and validity of claims in the technology field in which we operate is still evolving and, consequently, intellectual property positions in our industry are generally uncertain. We cannot assure you that we will prevail in any of these potential suits or that the damages or other remedies awarded, if any, would be commercially valuable.

Any dispute or litigation regarding patents or other intellectual property could be costly and time-consuming due to the complexity of our technology and the uncertainty of intellectual property litigation and could divert our management and key personnel from our business operations. A claim of intellectual property infringement could force us to enter into a costly or restrictive license agreement, which might not be available under acceptable terms or at all, could require us to redesign our products, which would be costly and time-consuming, and/or could subject us to an injunction against development and sale of certain of our products or services. We may have to pay substantial damages, including damages for past infringement if it is ultimately determined that our product candidates infringe a third partys proprietary rights. Even if these claims are without merit, defending a lawsuit takes significant time, may be expensive and may divert managements attention from other business concerns. Any public announcements related to litigation or interference proceedings initiated or threatened against as could cause our business to be harmed. Our intellectual property portfolio may not be useful in asserting a counterclaim, or negotiating a license, in response to a claim of intellectual property infringement. In certain of our businesses we rely on third party intellectual property licenses and we cannot ensure that these licenses will be available to us in the future on favorable terms or at all.

In order to achieve the Companys near and long-term goals, the Company will need to procure funds in addition to the amount raised in the Offering. There is no guarantee the Company will be able to raise such funds on acceptable terms or at all. If we are not able to raise sufficient capital in the future, we will not be able to execute our business plan, our continued operations will be in jeopardy and we may be forced to cease operations and sell or otherwise transfer all or substantially all of our remaining assets, which could cause a Purchaser to lose all or a portion of his or her investment.

The Company is dependent on Wei Tao, Ryan Scott, Ron Hupp, and Aaron Selverston in order to conduct its operations and execute its business plan, however, the Company has not purchased any insurance policies with respect to those individuals in the event of their death or disability. Therefore, if any of Wei Tao, Ryan Scott, Ron Hupp, and Aaron Selverston die or become disabled, the Company will not receive any compensation to assist with such persons absence. The loss of such person could negatively affect the Company and its operations.

Significant judgment is required in determining our provision for income taxes and other tax liabilities. In the ordinary course of our business, there are many transactions and calculations where the ultimate tax determination is uncertain. Although we believe that our tax estimates are reasonable: (i) there is no assurance that the final determination of tax audits or tax disputes will not be different from what is reflected in our income tax provisions, expense amounts for non-income based taxes and accruals and (ii) any material differences could have an adverse effect on our financial position and results of operations in the period or periods for which determination is made.

We do not have the internal infrastructure necessary, and are not required, to complete an attestation about our financial controls that would be required under Section 404 of the Sarbanes-Oxley Act of 2002. There can be no assurance that there are no significant deficiencies or material weaknesses in the quality of our financial controls. We expect to incur additional expenses and diversion of managements time if and when it becomes necessary to perform the system and process evaluation, testing and remediation required in order to comply with the management certification and auditor attestation requirements.

We depend significantly on the development of commercially viable new products free of any legal restrictions. If we are unsuccessful in developing new products in the future, our competitive position and results of operations may be negatively affected. However, as we invest in new technology, we face the risk of unanticipated operational or commercialization difficulties, including an inability to obtain necessary permits or governmental approvals, the development of competing technologies, failure of facilities or processes to operate in accordance with specifications or expectations, construction delays, cost over-runs, the unavailability of financing, required components or equipment and various other factors. Likewise, we have undertaken and are continuing to undertake initiatives to improve productivity and performance and to generate cost savings. These initiatives may not be completed or beneficial or the estimated cost savings from such activities may not be realized.

Our business exposes us to potential product liability risk, as well as warranty and recall claims that are inherent in the design, manufacture, sale and use of our products. We sell products in industries such as tourism where the impact of product liability risk is high. In the event our products actually or allegedly fail to perform as expected and we are subject to such claims above the amount of insurance coverage, outside the scope of our coverage, or for which we do not have coverage, our results of operations, as well as our reputation, could be adversely affected. Our products may be subject to recall for performance or safety-related issues. Product recalls subject us to harm to our reputation, loss of current and future customers, reduced revenue and product recall costs. Product recall costs are incurred when we, either voluntarily or involuntarily, recall a product through a formal campaign to solicit the return of specific products due to a known or suspected performance issue. Any significant product recalls could have an adverse effect on our business and results of operations.

Disruptions in operations due to technical problems or other interruptions such as floods or fire would adversely affect the manufacturing capacity of our facilities. Such interruptions could cause delays in production and cause us to incur additional expenses such as charges for expedited deliveries for products that are delayed. Additionally, our customers have the ability to cancel purchase orders in the event of any delays in production and may decrease future orders if delays are persistent. Additionally, to the extent that such disruptions do not result from damage to our physical property, these may not be covered by our business interruption insurance. Any such disruptions may adversely affect our business and results of operations.

We depend on various information systems to support our customers requirements and to successfully manage our business, including managing orders, supplies, accounting controls and payroll. Any inability to successfully manage the procurement, development, implementation or execution of our information systems and back-up systems, including matters related to system security, reliability, performance and access, as well as any inability of these systems to fulfill their intended purpose within our business, could have an adverse effect on our business and results of operations. Such disruptions may not be covered by our business interruption insurance.

In most instances, we guarantee that we will deliver a product by a scheduled date. If we subsequently fail to deliver the product as scheduled, we may be held responsible for cost impacts and/or other damages resulting from any delay. To the extent that these failures to deliver occur, the total damages for which we could be liable could significantly increase the cost of the products; as such, we could experience reduced profits or, in some cases, a loss for that contract. Additionally, failure to deliver products on time could result in damage to customer relationships, the potential loss of customers, and reputational damage which could impair our ability to attract new customers.

We must successfully adapt to technological advances in our industry, including the emergence of alternative distribution platforms. Our ability to exploit new distribution platforms and viewing technologies will affect our ability to maintain or grow our business and may increase our capital expenditures. Additionally, we must adapt to changing consumer behavior driven by advances such as virtual and augmented reality head-mounted displays and mobile devices. Such changes may impact the revenue we are able to generate from our own distribution methods by decreasing the audience share on our platform. If we fail to adapt our distribution methods and content to emerging technologies, our appeal to our targeted audiences might decline and there would be a materially adverse effect on our business and results of operations.

New and emerging technological advances, such as mobile computing devices that allow consumers to obtain information and view content may adversely impact or eliminate the demand for our products and services. The increasing availability of content on such devices, the improved video quality of the content on such devices and faster wireless delivery speeds may make individuals less likely to purchase our services. Our success can depend on new product development. The entertainment and communications industry is ever-changing as new technologies are introduced. Advances in technology, such as new video formats, downloading or alternative methods of product delivery and distribution channels, such as the Internet, or certain changes in consumer behavior driven by these or other technologies and methods of delivery, could have a negative effect on our business. These changes could lower cost barriers for our competitors desiring to enter into, or expand their presence in, the interactive services business. Increased competition may adversely affect our business and results of operations.

Our business is subject to risks relating to increasing competition for the leisure time and discretionary spending of consumers. We compete with all other sources of entertainment and information delivery. Technological advancements, such as new video formats and Internet streaming and downloading of programming that can be viewed on televisions, computers and mobile devices have increased the number of entertainment and information delivery choices available to consumers and intensified the challenges posed by audience fragmentation. The increasing number of choices available to audiences, including low-cost or free choices, could negatively impact not only consumer demand for our products and services, but also advertisers willingness to purchase advertising from us. Our failure to effectively anticipate or adapt to new technologies and changes in consumer expectations and behavior could significantly adversely affect our competitive position and its business and results of operations.

The piracy of our content, products and other intellectual property poses significant challenges for us. Technological developments, such as the proliferation of cloud-based storage and streaming, increased broadband Internet speed and penetration and increased speed of mobile data transmission have made it easier to create, transmit, distribute and store high quality unauthorized copies of content in unprotected digital formats, which has in turn encouraged the creation of highly scalable businesses that facilitate, and in many instances financially benefit from, such piracy. Piracy is particularly prevalent in many parts of the world that lack effective copyright and technical legal protections or enforcement measures, and illegitimate operators based in these parts of the world can attract viewers from anywhere in the world. The proliferation of unauthorized copies and piracy of the Companys content, products and intellectual property or the products it licenses from others could result in a reduction of the revenues that the Company receives from the legitimate sale, licensing and distribution of its content and products. The Company devotes resources to protecting its content, products and intellectual property, but there can be no assurance that the Companys efforts to enforce its rights and combat piracy will be successful.

We create and acquire media and entertainment content, the success of which depends substantially on consumer tastes and preferences that change in often unpredictable ways. The success of these businesses depends on our ability to consistently create, acquire, market and distribute immersive media and other content that meet the changing preferences of the broad domestic and international consumer market. We have invested, and will continue to invest, substantial amounts in our content, including in the production of original content, before learning the extent to which it would earn consumer acceptance. We also obtain a significant portion of our content from third parties, such as content studios and other suppliers. Competition for popular content is intense, and we may have to increase the price we are willing to pay or be outbid by our competitors for popular content. Entering into or renewing contracts for such programming rights or acquiring additional rights may result in significantly increased costs. There can be no assurance that revenue from these contracts will exceed our cost for the rights, as well as the other costs of producing and distributing the content. If our content does not achieve sufficient consumer acceptance, or if we cannot obtain or retain rights to popular content on acceptable terms, or at all, our businesses may be adversely affected.

Technology companies, including many of the Companys competitors, frequently enter into litigation based on allegations of patent infringement or other violations of intellectual property rights. In addition, patent holding companies seek to monetize patents they have purchased or otherwise obtained. As the Company grows, the intellectual property rights claims against it will likely increase. The Company intends to vigorously defend infringement actions in court and before the U.S. International Trade Commission. The plaintiffs in these actions frequently seek injunctions and substantial damages. Regardless of the scope or validity of such patents or other intellectual property rights, or the merits of any claims by potential or actual litigants, the Company may have to engage in protracted litigation. If the Company is found to infringe one or more patents or other intellectual property rights, regardless of whether it can develop non-infringing technology, it may be required to pay substantial damages or royalties to a third-party, or it may be subject to a temporary or permanent injunction prohibiting the Company from marketing or selling certain products. In certain cases, the Company may consider the desirability of entering into licensing agreements, although no assurance can be given that such licenses can be obtained on acceptable terms or that litigation will not occur. These licenses may also significantly increase the Companys operating expenses. Regardless of the merit of particular claims, litigation may be expensive, time-consuming, disruptive to the Companys operations and distracting to management. In recognition of these considerations, the Company may enter into arrangements to settle litigation. If one or more legal matters were resolved against the Companys consolidated financial statements for that reporting period could be materially adversely affected. Further, such an outcome could result in significant compensatory, punitive or trebled monetary damages, disgorgement of revenue or profits, remedial corporate measures or injunctive relief against the Company that could adversely affect its financial condition and results of operations.

Our agreements with customers and other third parties may include indemnification provisions under which we agree to indemnify them for losses suffered or incurred as a result of claims of intellectual property infringement, damages caused by us to property or persons, or other liabilities relating to or arising from our products, services or other contractual obligations. The term of these indemnity provisions generally survives termination or expiration of the applicable agreement. Large indemnity payments would harm our business, financial condition and results of operations. In addition, any type of intellectual property lawsuit, whether initiated by us or a third party, would likely be time consuming and expensive to resolve and would divert managements time and attention.

To protect our rights in our services and technology, we rely on a combination of copyright and trademark laws, patents, trade secrets, confidentiality agreements with employees and third parties, and protective contractual provisions. We also rely on laws pertaining to trademarks and domain names to protect the value of our corporate brands and reputation. Despite our efforts to protect our proprietary rights, unauthorized parties may copy aspects of our services or technology, obtain and use information, marks, or technology that we regard as proprietary, or otherwise violate or infringe our intellectual property rights. In addition, it is possible that others could independently develop substantially equivalent intellectual property. If we do not effectively protect our intellectual property, or if others independently develop substantially equivalent intellectual property, our competitive position could be weakened. Effectively policing the unauthorized use of our services and technology is time-consuming and costly, and the steps taken by us may not prevent misappropriation of our technology or other proprietary assets. The efforts we have taken to protect our proprietary rights may not be sufficient or effective, and unauthorized parties may copy aspects of our services, use similar marks or domain names, or obtain and use information, marks, or technology that we regard as proprietary. We may have to litigate to enforce our intellectual property rights, to protect our trade secrets, or to determine the validity and scope of others proprietary rights, which are sometimes not clear or may change. Litigation can be time consuming and expensive, and the outcome can be difficult to predict.

In addition to the technologies we develop, our suppliers develop product innovations at our direction that are requested by our customers. Further, we rely heavily on our component suppliers, such as Topfoison, to provide us with leading-edge components that conform to required specifications or contractual arrangements on time and in accordance with a product roadmap. If we are not able to maintain or expand our relationships with our suppliers or continue to leverage their research and development capabilities to develop new technologies desired by our customers, our ability to deliver leading-edge products in a timely manner may be impaired and we could be required to incur additional research and development expenses. Also, disruption in our supply chain or the need to find alternative suppliers could impact the costs and/or timing associated with procuring necessary products, components and services. Similarly, suppliers have operating risks that could impact our business. These risks could create product time delays, inventory and invoicing problems, staging delays, and other operational difficulties.

For startups

Crypto

Company

This site is operated by OpenDeal Inc., which is not a registered
broker-dealer. OpenDeal does not give investment advice, endorsement, analysis or
recommendations with respect to any securities. All securities listed here are being
offered by, and all information included on this site is the responsibility of, the
applicable issuer of such securities. By accessing this site and any pages thereof,
you agree to be bound by the
Terms of Use
and
Privacy Policy.

Investors should verify any issuer information they consider important before making
an investment.

All securities-related activity is conducted by OpenDeal Portal LLC doing business as
Republic, a funding portal which is registered with the US Securities and Exchange
Commission (SEC) as a funding portal (Portal) and is a member of the Financial
Industry Regulatory Authority (FINRA). Republic is owned by OpenDeal.

Investments in private companies are particularly risky and may result in total loss of
invested capital. Past performance of a security or a company does not guarantee future
results or returns. Only investors who understand the
risks of early stage investment
and who meet the Republic's
investment criteria
may invest.

Republic does not verify information provided by companies on this Portal and makes no
assurance as to the completeness or accuracy of any such information. Additional
information about companies fundraising on the Portal can be found by searching the
EDGAR database.